Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 13 pages
Data source: Published sources
Topics:
Toyota production system; Benefits of lean manufacturing; Toyota's CCC21 (Construction of Cost Competitiveness for the 21st century); Keiretsu; The Single Minute Exchange of Die; Toyota's cost-cutting strategies; Global body line; Toyota's component suppliers; Competition in China's automobile industry; Sourcing and manufacturing auto parts in China; Toyota's purchasing philosophy
Abstract
Toyota has always strived to be a cost and quality leader. In 2005, Toyota''s new cost-cutting initiative comes from China and its ?China Price? has become its new benchmark to cut the cost of its auto components further. For this, Toyota has planned certain cost-cutting strategies that are likely to come across certain hindrances. This case study, while highlighting Toyota''s cost management strategies since its inception, offers scope to discuss its attempt to establish itself as an industry cost leader with the price of auto parts in China as its new yardstick.
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Abstract
Toyota has always strived to be a cost and quality leader. In 2005, Toyota''s new cost-cutting initiative comes from China and its ?China Price? has become its new benchmark to cut the cost of its auto components further. For this, Toyota has planned certain cost-cutting strategies that are likely to come across certain hindrances. This case study, while highlighting Toyota''s cost management strategies since its inception, offers scope to discuss its attempt to establish itself as an industry cost leader with the price of auto parts in China as its new yardstick.